CareCloud Secures $50M Credit Facility and Redeems $27.52 Preferred Stock
CareCloud closed a $50 million credit facility with Citizens Bank and Provident Bank on April 13, 2026, providing non-dilutive capital and institutional-grade financing. The company will redeem all 1.51 million outstanding Series B preferred shares on May 15, eliminating $3.2 million in annual dividends and lowering its cost of capital.
1. Credit Facility Details
On April 13, 2026, CareCloud closed a $50 million credit facility arranged by Citizens Bank with participation from Provident Bank. The facility provides non-dilutive, institutional-grade debt financing that enhances liquidity, lowers overall funding costs, and reinforces the company’s financial flexibility for operational resilience.
2. Series B Preferred Stock Redemption
CareCloud will redeem all 1,511,372 shares of its 8.75% Series B cumulative redeemable perpetual preferred stock on May 15, 2026, at a total redemption price of $27.52 per share. This redemption will terminate dividend accrual and holder rights, simplifying the capital base and enabling delisting of the preferred shares.
3. Capital Structure Impact
Eliminating the Series B preferred stock removes approximately $3.2 million in annual dividend obligations and replaces higher-cost equity with lower-cost debt. This adjustment strengthens the balance sheet by reducing financing expenses and removing preferred equity overhang, positioning the company for improved valuation metrics.
4. Strategic Outlook and Growth Initiatives
With a simplified capital structure and enhanced liquidity, CareCloud plans to accelerate expansion of its AI-driven healthcare platform and revenue cycle management solutions. The company aims to leverage the strengthened balance sheet to drive organic growth, pursue strategic initiatives, and enhance long-term shareholder value.